The Progressive Art Of Single-Entry Bookkeeping

Dan Mitchell, at the International Liberty Blog, has written the best summary I've ever read of the failures of Keynesian economics. 

Go here. 

A slice....

To explain how this works, let’s briefly digress and explain Keynesian economics. This is the theory that you can jump-start a weak economy by having government borrow a lot of money and then “inject” this money into the economy. And that’s precisely what Obama did with the stimulus, mostly with more spending, but also with some tax cuts for favored constituencies. According to the theory, the money that is being spent by the government (and the recipients of tax cuts) will goose growth and create a ripple effect as producers hire people to deal with the increase in “aggregate demand.”

The Keynesians basically assume that there are no “opportunity costs” when government borrows money and spends it. That’s a bit of economic jargon, but it’s simply a way of saying that Keynesians think that money, for all intents and purposes, will sit idle and gather dust during an economic downturn in the absence of government.
 

This is a very nice theory…but only on a blackboard.
 

In reality, there is an “opportunity cost” when government borrows money and spends it. Resources are diverted from the productive sector of the economy. This might not be a problem if government spent money wisely, but stimulus schemes tend to reward interest groups with the most political clout. So instead of outlays for physical and human capital, which at least theoretically might improve the economy’s productive capacity, the White House directed the bulk of the stimulus to redistribution programs and handouts to state governments.

Yeah.  What he said.  Everything looks rosy as long as you restrict your analysis to what Kevin Williamson recently called "The Occult Art Of Single-Entry Bookkeeping". 

 

The Ultimate Libertarian Sex Fantasy !!!

This is the ultimate Libertarian sex fantasy, compliments of the great Daniel J. Mitchell of the International Liberty website:

On the way home (an extreme libertarian) stopped at the gas station where a drop-dead gorgeous blonde was filling up her car at the next pump.

She looked at the ammo in the back of his pickup truck and said in a very sexy voice, “I’m a big believer in barter. Would you be interested in trading sex for ammo?”

He thought a few seconds and asked, “What kinda ammo ya got?”

My heart breaks. My tears flow.

Lobbyists on K Street in Washington D.C. have had a rough time of it for the last two weeks. 
Here's Roll Call, on the difficulties now facing the residents of Gucci Gulch:

…sequester cuts…reflect not only Washington’s political paralysis but a bitter lobbying failure for K Street interests across the board. From university professors and scientists to cancer victims, defense contractors and federal workers, hundreds of advocacy, trade and labor groups have lobbied aggressively for months to head off the cuts. They’ve run ads, testified on Capitol Hill, staged demonstrations and hounded lawmakers, all to no avail. …the path forward could be a lobbying nightmare.


These people have lifestyles that would make Roman Emperors blush. 
They convince your CongressCritters to spend money on silly, silly things.  Mostly defense, but sometimes on million-dollar studies of Why Lesbians Get Fat.  (Hint: It's because they're less promiscuous than men, therefore more secure in their relationships.  Plus, they party a lot.) 

Anyway, thanks to the great Dan Mitchell for the quote copied above.  And also for this cartoon showing his reaction to the difficulties now facing K Street, which, if Libertarians have their way, will eventually be bulldozed to put up a Frisbee Golf Course.